Estimated read time: 3 minutes, 52 seconds
Cisco Systems estimated that IoT was “born” between 2008 and 2009, but it’s just in the last couple years we’ve seen an explosion of IoT solutions for both commercial and domestic use. The Internet of Things is a network of interconnected physical devices that collect and share data with each other. You’re probably already familiar with IoT associated features like automatic climate control for Smart Homes or the daily holistic health reports generated by aggregating data from your wearable technology.
As technology progresses, we are seeing even more pragmatic applications. With that being said, it’s no surprise that Danfoss, one of the world’s leading suppliers of energy-efficient solutions, is already thinking of innovative ways to implement IoT technology to better meet the needs of their customers and improve their existing product offerings.
For nearly 80 years, Danfoss has pushed the boundaries of climate and energy technologies. Danfoss was the original inventor of both the radiator thermostat and the automatic differential pressure controller. Today, Danfoss engineers technologies to meet the growing need for energy and climate-friendly solutions in areas such as climate control, building and manufacturing optimization, electronics, hydraulics, and more
Danfoss Undergoes a Digital Transformation.
Since its inception in 1933 by founder Mads Clausen, Danfoss has predominantly been a manufacturer of hardware; from the world’s first mass-produced frequency converters all the way to today’s telematics used for precision farming. Danfoss continues to stay true to its rich manufacturing heritage but is also exploring new opportunities in software to further support their current offerings.
A lot of the businesses in our industry are being transformed to be more solution-oriented, to be more digital. Our customers expect it and in order to stay number one or two in all areas we operate in, we need to evolve ourselves.
-Henrik Schurmann, Vice President, Food Retail
For Danfoss, moving toward a digital transformation is the right step towards staying competitive. Integrating IoT tech allows Danfoss to gather more product data and use those insights to provide better product experiences for their customers. This huge opportunity also presents interesting challenges for Danfoss to solve.
How can Danfoss monetize their software solutions directly with the end-user and/or through traditional distributors? Can their internal systems manage the automation needed for digital transformation? What is the best way to package, price, and deliver these online services to existing customers?
…Danfoss is not a software company. Not only do we need organically developed competencies and capabilities, but we also need partners to grow our service and software business.
Danfoss knew they needed a partner that has extensive experience helping businesses monetize software and digital products, which is why they turned to FastSpring.
FastSpring’s Hackathon Encourages Collaboration & Innovation.
To facilitate this entrepreneurial endeavor, FastSpring partnered with Danfoss and hosted a hackathon for the Danfoss employees.
The Hackathon is a new way of doing things, we wanted to act more entrepreneurial—adopt that startup mindset—even though we are a big company.
-Michael Hansen, Product Manager, Monitoring & Optimization Systems
Employees from a variety of departments formed cross-functional teams and each created a proof of concept that integrates FastSpring’s all-in-one ecommerce platform with Danfoss technology to showcase how Danfoss can monetize digital services and data.
Watch the video below to learn more about the FastSpring sponsored hackathon at Danfoss.
A Shift Towards More Entrepreneurial Thinking.
For an established business like Danfoss, the process of developing new products and features follows a very linear model.
At the beginning, key stakeholders would brainstorm to flush out all the project details. Next, business objectives and deliverables are agreed upon. And finally key resources are identified and talent is allocated accordingly. The entire process is very controlled and precise to help ensure overall product quality and maximize efficiency.
Despite the demonstrated success of this process, Danfoss knew that in order to innovate they have to evolve their traditional model. In keeping with the digital transformation theme, Danfoss experimented with new workflows and more fluid ways of thinking.
Your Partner in Growth.
IoT tech is just one example of our how our world is undergoing a digital transformation. Even traditional hardware businesses, like Danfoss, are recognizing the role software solutions play in the overall customer experience.
FastSpring is proud to support innovative companies like Danfoss who are constantly pushing the boundaries of cutting-edge technology and innovative solutions. From SMBs to enterprise level businesses, FastSpring’s powerful, all-in-one ecommerce platform helps digital businesses quickly monetize their software, SaaS, and digital products.
Ready to see what FastSpring’s end-to-end ecommerce platform can do for you? Click here to get your free demo today.